Low-carbon ammonia could supply power plants with feedstock by 2050. Indeed, power plants could potentially use 100 million tons of ammonia.
Little political support
The global ammonia market currently represents 200 million tons. It is used in multiple sectors such as fertilizers, but also water purification or refrigeration. Its wide use implies a significant decarbonization potential.
In particular, power plants could use 100 million tons of low-carbon ammonia by 2050, according to a report by Wood Mackenzie. This would help meet the growing demand for low-carbon products. However, the development of ammonia to decarbonize uses is facing a lack of political support.
There is currently little incentive or demand to scale up this sector. Rising natural gas prices are driving demand, but the cost of producing low-carbon ammonia remains high. Therefore, political support is inevitable to decarbonize the sector.
Lowering costs
Ammonia could become essential in several key sectors in the years to come. In the power generation sector, ammonia could be used as a fuel alone. But it can also be a co-fuel, alongside coal, for example.
Ammonia could also become important in the marine sector. Wood Mackenzie estimates that it would reach up to 40% of global e-fuels by 2050. Finally, ammonia can also act as a more economical carrier of hydrogen over long distances.
However, these uses are still hypothetical. Substantial investments are needed to develop this low-carbon product and make it competitive. Thus, it is likely that the costs of low-carbon ammonia will remain higher than gray ammonia in the coming decade.
